Mortgage Blog

Accord, Metro Bank and Natwest keep smashing interest rates

Posted by John Yerou on October 1st, 2021 in Mortgage Blog

The trend of lenders cutting interest rates continued well into the second half of September.

Several rates for lower-deposit mortgages, which had been over 2%, dipped below that threshold.

Neither were the cuts restricted to mortgage types.

Lenders took chunks off standard residential and new build mortgages to maintain property market momentum.

Here's a sampling of some of the new mortgage deals on offer*
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2- and 5-Year Fixed Remortgage Rates from Halifax

Posted by John Yerou on June 4th, 2021 in Mortgage Blog

As of today, Friday 4th June, Halifax has introduced a range of remortgage deals on 2- and 5-year fixed rate mortgage loans.

Higher deposits, >=25%, come as either repayment or interest only.

For any lower deposits, down to 15%, the lender is offering repayment mortgages only. Details as follows:

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Government eases 5% deposit mortgages back into market

Posted by John Yerou on May 28th, 2021 in Mortgage Blog

Undoubtedly, the mortgage and construction markets need first-time buyers. In turn, first time buyers need 5% deposit mortgages. In this symbiotic relationship, the success of one promotes the longevity of the other.

But, during the pandemic, 5% deposit deals—first-time buyers' go-to mortgage—disappeared from the High Street. Economics were simply too precarious for lenders to back high loan-to-value deals.

So, what were would-be homeowners with low deposits to do if they wanted a mortgage?

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10% Deposit Mortgages in a Post-Lockdown World

Posted by John Yerou on December 8th, 2020 in Mortgage Blog

Since exiting lockdown (December 2020), several lenders have now relaunched 10% deposit mortgages. Many, including several contractor-friendly lenders, are hoping to tempt low-deposit buyers before the Stamp Duty holiday ends.

But buyers shouldn't get complacent. The current processing time of mortgages is double the norm.

The upshot? There's only a small window remaining to make the most of SDLT's reduced rate. Today, we consider:

• the recent history of low deposit lending,
• the immediate future of high LTV,
• the relationship between low deposits and lender 'risk' assessment, and
• what you can do to avoid the worst of new, higher interest rates.

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Official: We Are the Best Contractor Mortgage Provider 2020

Posted by John Yerou on November 6th, 2020 in Mortgage Blog

Wednesday night saw the second annual Contractor Awards ceremony. How different compared to the inaugural event it was, thanks to the pandemic.

Last year, we enjoyed an extravaganza at the Grand Ballroom at The Montcalm, Westminster. This year, a 50-minute live YouTube event with a chat-thread, compered by comedian, Ian Moore.

Nonetheless, it was a well-visited stream, with a convivial atmosphere amongst all participants. Our MC fair rattled through the nominees, sponsors and winners. And only with some nifty finger work did we manage to maintain 'live' commentary on Twitter.

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COVID-19’s long-term impact on mortgage lending

Posted by John Yerou on August 21st, 2020 in Mortgage Blog

My biggest takeaway from the COVID-19 pandemic so far? Previously resolute lenders' mortgage criteria are no longer set in stone. They have become dynamic, reactive and tenuous.

Each month, week, and day, borrowing terms change. Lenders seem not to work to an ethos or an 'ideal', as they have done up until now. Instead, they introduce or amend criteria based on the latest data sets and figures impacting industry sectors.

The new 'normal', so far as such a thing exists, includes lenders:Continue reading about  COVID-19’s long-term impact on mortgage lending

COVID-19’s Impact on Mortgage Availability and Accessibility

Posted by John Yerou on June 5th, 2020 in Mortgage Blog

On the face of it, here we are: moving tentatively towards the other side of lockdown. As an industry, a nation, a world of one people, we've longed for the lifting of lockdown restrictions since their imposition. So, now that we're within touching distance, what does 'back to normal' mean?

COVID-19's impact has turned most people's lives upside down. For contractors in particular, the pandemic has had a huge impact on mortgage availability. But we've all faced different hurdles, both at home and at work. The experience has left many of us bruised, battered and unsure of what happens next.

Content bookmarks:

• Slim pickings for low deposit mortgages;
• Update, 23^rd August, 2020: low deposit mortgages in constant flux;
• The problem with mortgage payment holidays (especially if you don't need them);
  • Does a double negative make a positive?
  • Mortgage payment holidays are not 'free money';
• Alternatives to payment holidays;
• Extra checks for new mortgage applications;
• Remortgaging Options;
  • How 'Down Valuing' could add another curveball;
  • Negative equity and housing market predictions (hint: no positives!).

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Mortgage payment holidays: good or bad for contractors?

Posted by John Yerou on May 7th, 2020 in Mortgage Blog

If you're a contractor on reduced income as a result of the COVID-19 pandemic, you may be tempted to take a mortgage payment holiday. I'd urge you to think before making that leap.

Most lenders are offering a 3-month break from paying your mortgage (plus loans and credit cards) while we're in lockdown.

If we don't get the virus under control, they may have to rethink and extend that position.

A protracted absence from work is may be inevitable. Like a holiday, even. But I urge all contractors to maintain their regular mortgage repayments, wherever possible.

This may seem counterintuitive, now. But lenders don't have to guarantee mortgage payment holidays indefinitely. And the likelihood is, they won't be able to without some form of adjustment!

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The Smart Way for First-Time Buyers to Save on Stamp Duty

Posted by John Yerou on November 12th, 2018 in Mortgage Blog

We get that First-Time Buyers often struggle to get onto the property ladder. For those trying to buy their first home on their own, it can be even more difficult. Saving the deposit, securing the mortgage, solicitors fees and budgeting for Stamp Duty? The costs keep adding up in a relentless spiral.

But borrowers got a hand up from an unexpected source in 2017. In the Autumn Budget, The Government introduced Stamp Duty relief for first-time buyers. Here's how it works:

First time buyers purchasing their first home for £300,000 or less will pay no SDLT. Where the purchase price is over £300,000 but does not exceed £500,000 they will pay 5% on the amount above £300,000.

Here are two clever, but legitimate routes to claiming First-Time Buyer Stamp Duty relief. It's perfect for borrowers who plan to use the bank of mom and dad, but don't want to pay Stamp Duty. It can even work for couples where one of the two has bought a house before. But first...
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How does a BoE base rate rise affect my mortgage repayments?

Posted by John Yerou on September 20th, 2018 in Mortgage Blog

If you have a fixed rate mortgage, the BoE base rate rise in August need mean little to you. At least not yet.

But, when your fixed rate ends (and it will), you'll drop onto your lender's SVR.

Lenders' SVRs are typically much higher than the introductory fixed rate you pay when you take out a mortgage/remortgage. So, when your introductory period ends, that's when you'll see this rise—the first in a decade—affect your repayments.

If you're already on a variable or tracker rate, your repayments will increase immediately. Today's post considers how you'll feel the impact of this increase in your pocket, contractor or not.

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